Here is a chart of the Junior Gold ETF:GDXJ. Every since the SPX topped out in late April the junior Gold stocks ETF:GDXJ has been underperforming the major Gold ETF:GDX. This ratio did reach long term support being the July 2010 low in mid Dec and since then has bounced back up and the GDXJ has been outperforming the GDX. The ratio of GDXJ and Gold also tagged a double bottom support being the early Oct low in mid Dec and has also bounced back and since then has been outperforming Gold as well. So this chart of the Junior Gold ETF:GDXJ is very well defined within a downtrending channel. Price needs to clear and hold above this downtrendline and price resistance of 26.36 to suggest the Gold stocks have ended their downtrend. This is especially important with GDXJ as it has been outperforming the others since mid Dec and needs to continue to show leadership. With the technical damage done since Sept the upside is likely to be limited as well. Lots of hard work ahead for all the Gold group. Not nearly as easy to rally with so much resistance dead ahead. That is what this chart is suggesting to me fwiw. I dont' actually care either way as the inverse Gold stock ETF:DUST moves just as well on the downside as the others do on the upside. And I don't write a Gold newsletter either so don't have to be bullish like so many letter writers that don't dare talk bearishly about precious metals.